Question 1

Which of the following factors should be used to determine transportation department performance?

Accepted Answer

A)  Full truckloads (FTL), maintenance, and discounts 
B)  Quality, fill rate, and mode selection 
C)  Full-container load (FCL), perfect order performance, and dwell time 
D)  Cost, speed, and delivery consistency 
A)  Full truckloads (FTL), maintenance, and discounts 
B)  Quality, fill rate, and mode selection 
C)  Full-container load (FCL), perfect order performance, and dwell time 
D)  Cost, speed, and delivery consistency

Question 2

A company originally based in Germany sets up companies in India, China, Vietnam, Mexico, and Brazil. It sources most of the raw materials locally and employs the local workforce to manage and produce finished goods. Most of the goods produced are consumed in the same country. The company can be classified as what type of enterprise?

Accepted Answer

A)  Globally integrated 
B)  Domestic 
C)  Multinational 
D)  Virtual 
A)  Globally integrated 
B)  Domestic 
C)  Multinational 
D)  Virtual

Question 3

The main benefit of a mass customization product design strategy is to:

Accepted Answer

A)  sell high quantities of product to specific customer segments. 
B)  achieve economies of scale in purchasing components. 
C)  offer more product variety while keeping inventories low. 
D)  avoid assembly of finished products. 
A)  sell high quantities of product to specific customer segments. 
B)  achieve economies of scale in purchasing components. 
C)  offer more product variety while keeping inventories low. 
D)  avoid assembly of finished products.

Question 4

Which of the following outcomes is an expected benefit of effectively implementing supply chain event management software?

Accepted Answer

A)  Inventory data are captured in real time. 
B)  Files are transferred from one corporation to another. 
C)  Notifications of variances from plans are triggered. 
D)  Communication protocols between companies are standardized. 
A)  Inventory data are captured in real time. 
B)  Files are transferred from one corporation to another. 
C)  Notifications of variances from plans are triggered. 
D)  Communication protocols between companies are standardized.

Question 5

Which of the following situations is an example of postponement?

Accepted Answer

A)  Shipments are broken down into small groups for reshipment. 
B)  Shipments are consolidated immediately for reshipment. 
C)  Production begins after a customer order is received. 
D)  Partially assembled goods are assembled at a later stage. 
A)  Shipments are broken down into small groups for reshipment. 
B)  Shipments are consolidated immediately for reshipment. 
C)  Production begins after a customer order is received. 
D)  Partially assembled goods are assembled at a later stage.

Question 6

Which of the following inventory-related costs typically is used only for decision making?

Accepted Answer

A)  Carrying costs 
B)  Procurement overhead 
C)  Demurrage 
D)  Obsolescence 
A)  Carrying costs 
B)  Procurement overhead 
C)  Demurrage 
D)  Obsolescence

Question 7

Which of the following types of competitive strategies most likely will be effective for an industry in which the product is a standardized commodity?

Accepted Answer

A)  Low-cost leadership 
B)  Best-cost provider 
C)  Broad differentiation 
D)  Focused differentiation 
A)  Low-cost leadership 
B)  Best-cost provider 
C)  Broad differentiation 
D)  Focused differentiation

Question 8

In large supply chain transformation efforts, companies often ignore which critical component of change?

Accepted Answer

A)  Technology 
B)  Suppliers 
C)  Customers 
D)  Culture 
A)  Technology 
B)  Suppliers 
C)  Customers 
D)  Culture

Question 9

Overall supply chain risk may be increased by implementing which of the following strategies?

Accepted Answer

A)  Single sourcing a product that makes the highest annual profit 
B)  Outsourcing products that are not well suited to a company's operations 
C)  Identifying multiple sources for a product with the potential for supply chain disruption 
D)  Internally manufacturing products with high levels of technical intellectual property 
A)  Single sourcing a product that makes the highest annual profit 
B)  Outsourcing products that are not well suited to a company's operations 
C)  Identifying multiple sources for a product with the potential for supply chain disruption 
D)  Internally manufacturing products with high levels of technical intellectual property

Question 10

Which of the following statements best identifies the value of using a supplier rating system?

Accepted Answer

A)  It provides an objective means for a company to determine outstanding suppliers. 
B)  It allows customers to post chargebacks to suppliers. 
C)  It offers a company an effective way to control suppliers' delivery processes. 
D)  It ensures that all suppliers are using the same quality standards to manufacture products. 
A)  It provides an objective means for a company to determine outstanding suppliers. 
B)  It allows customers to post chargebacks to suppliers. 
C)  It offers a company an effective way to control suppliers' delivery processes. 
D)  It ensures that all suppliers are using the same quality standards to manufacture products.

Question 11

After identifying the potential causes for delays in communicating demand information up the supply chain, the trading partners should take which of the following actions?

Accepted Answer

A)  Implement a higher-speed data communications network. 
B)  Change procedures so data is communicated more frequently. 
C)  Identify the root causes for the delays. 
D)  Map and analyze the value stream. 
A)  Implement a higher-speed data communications network. 
B)  Change procedures so data is communicated more frequently. 
C)  Identify the root causes for the delays. 
D)  Map and analyze the value stream.

Question 12

A company has significant cash invested in its finished goods inventories. What action can this company take to significantly reduce its inventory investment while maintaining its customer service levels?

Accepted Answer

A)  Begin production after receipt of customer orders 
B)  Move the customer decoupling point from finished goods to components 
C)  Increase component assembly lead times 
D)  Plan key component material with preferred suppliers 
A)  Begin production after receipt of customer orders 
B)  Move the customer decoupling point from finished goods to components 
C)  Increase component assembly lead times 
D)  Plan key component material with preferred suppliers

Question 13

Mass customization results in savings due to economies of scale and which of the following additional benefits?

Accepted Answer

A)  An opportunity to invest in equipment and training 
B)  A greater appeal of differentiated products to different markets 
C)  Facilitation of a pull system 
D)  Elimination of friction among distributors 
A)  An opportunity to invest in equipment and training 
B)  A greater appeal of differentiated products to different markets 
C)  Facilitation of a pull system 
D)  Elimination of friction among distributors

Question 14

Compared to a global strategy, a multicountry strategy would be characterized by:

Accepted Answer

A)  strategy coordination across countries. 
B)  preferred suppliers located in host countries. 
C)  major strategic decisions coordinated centrally. 
D)  products adapted to local needs. 
A)  strategy coordination across countries. 
B)  preferred suppliers located in host countries. 
C)  major strategic decisions coordinated centrally. 
D)  products adapted to local needs.

Question 15

A company that is focused on customer relationship management is most likely to take which of the following actions for customers who have been profitable over time?

Accepted Answer

A)  Reduce the cost of serving them. 
B)  Target them for higher margin services. 
C)  Target them for greater attention. 
D)  Charge them for administrative services used. 
A)  Reduce the cost of serving them. 
B)  Target them for higher margin services. 
C)  Target them for greater attention. 
D)  Charge them for administrative services used.

Question 16

An effective procurement strategy for commodity products should focus on:

Accepted Answer

A)  driving down cost and reducing risk. 
B)  spreading purchases equally across suppliers. 
C)  selecting primary and alternate sources. 
D)  selecting suppliers with value-added products. 
A)  driving down cost and reducing risk. 
B)  spreading purchases equally across suppliers. 
C)  selecting primary and alternate sources. 
D)  selecting suppliers with value-added products.

Question 17

Products that share characteristics of predictable demand and low profit margin will have competition based on which of the following?

Accepted Answer

A)  Fastest to market 
B)  Lowest landed cost 
C)  Product improvements 
D)  Supply flexibility 
A)  Fastest to market 
B)  Lowest landed cost 
C)  Product improvements 
D)  Supply flexibility

Question 18

Which of the following types of risk typically would be most difficult to plan for and mitigate?

Accepted Answer

A)  Currency fluctuation 
B)  Forecast error 
C)  Geopolitical 
D)  Supplier performance 
A)  Currency fluctuation 
B)  Forecast error 
C)  Geopolitical 
D)  Supplier performance

Question 19

Which of the following methods is used to minimize the bullwhip effect?

Accepted Answer

A)  Outsourcing noncore business activities 
B)  Reducing the number of stock keeping units (SKUs) 
C)  Reducing lead time 
D)  Increasing factory inventory 
A)  Outsourcing noncore business activities 
B)  Reducing the number of stock keeping units (SKUs) 
C)  Reducing lead time 
D)  Increasing factory inventory

Question 20

Which of the following tools allows supply chain partners to exchange information related to product demand and supply of their resources?

Accepted Answer

A)  Global logistics and international standards 
B)  Collaborative planning, forecasting, and replenishment (CPFR) 
C)  Supplier relationship applications 
D)  Advanced planning and scheduling (APS) systems 
A)  Global logistics and international standards 
B)  Collaborative planning, forecasting, and replenishment (CPFR) 
C)  Supplier relationship applications 
D)  Advanced planning and scheduling (APS) systems

Which of the following factors should be used to determine transportation department performance?

The main benefit of a mass customization product design strategy is to:

Which of the following outcomes is an expected benefit of effectively implementing supply chain event management software?

Which of the following situations is an example of postponement?

Which of the following inventory-related costs typically is used only for decision making?

Which of the following types of competitive strategies most likely will be effective for an industry in which the product is a standardized commodity?

In large supply chain transformation efforts, companies often ignore which critical component of change?

Overall supply chain risk may be increased by implementing which of the following strategies?

Which of the following statements best identifies the value of using a supplier rating system?

After identifying the potential causes for delays in communicating demand information up the supply chain, the trading partners should take which of the following actions?

A company has significant cash invested in its finished goods inventories. What action can this company take to significantly reduce its inventory investment while maintaining its customer service levels?

Mass customization results in savings due to economies of scale and which of the following additional benefits?

Compared to a global strategy, a multicountry strategy would be characterized by:

A company that is focused on customer relationship management is most likely to take which of the following actions for customers who have been profitable over time?

An effective procurement strategy for commodity products should focus on:

Products that share characteristics of predictable demand and low profit margin will have competition based on which of the following?

Which of the following types of risk typically would be most difficult to plan for and mitigate?

Which of the following methods is used to minimize the bullwhip effect?

Which of the following tools allows supply chain partners to exchange information related to product demand and supply of their resources?

Certification in Logistics, Transportation and Distribution

CPIM - Basics of Supply Chain Management

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Exam 3: APICS Certified Supply Chain Professional

Which of the following factors should be used to determine transportation department performance?

The main benefit of a mass customization product design strategy is to:

Which of the following outcomes is an expected benefit of effectively implementing supply chain event management software?

Which of the following situations is an example of postponement?

Which of the following inventory-related costs typically is used only for decision making?

Which of the following types of competitive strategies most likely will be effective for an industry in which the product is a standardized commodity?

In large supply chain transformation efforts, companies often ignore which critical component of change?

Overall supply chain risk may be increased by implementing which of the following strategies?

Which of the following statements best identifies the value of using a supplier rating system?

After identifying the potential causes for delays in communicating demand information up the supply chain, the trading partners should take which of the following actions?

A company has significant cash invested in its finished goods inventories. What action can this company take to significantly reduce its inventory investment while maintaining its customer service levels?

Mass customization results in savings due to economies of scale and which of the following additional benefits?

Compared to a global strategy, a multicountry strategy would be characterized by:

A company that is focused on customer relationship management is most likely to take which of the following actions for customers who have been profitable over time?

An effective procurement strategy for commodity products should focus on:

Products that share characteristics of predictable demand and low profit margin will have competition based on which of the following?

Which of the following types of risk typically would be most difficult to plan for and mitigate?

Which of the following methods is used to minimize the bullwhip effect?

Which of the following tools allows supply chain partners to exchange information related to product demand and supply of their resources?

Certification in Logistics, Transportation and Distribution

CPIM - Basics of Supply Chain Management

Filters